Kraft Heinz is carving itself into two independent public companies, a move designed to sharpen focus on brand growth and unlock fresh value across a portfolio of some of the world’s most recognisable food names.
The restructure, unanimously approved by the board, will see the formation of “Global Taste Elevation Co.” and “North American Grocery Co.” through a tax-free spin-off. Management said the split reduces structural complexity and allows each business to dedicate resources and capital to distinct growth agendas.
For CMOs, the separation signals more targeted brand investment, with each new company set up to focus on category leadership, consumer engagement and market expansion without competing internally for attention.
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“Global Taste Elevation Co.” – with approximately US$15.4 billion in 2024 net sales – will house Heinz, Philadelphia and Kraft Mac & Cheese, with a mandate to drive industry-leading growth in sauces, spreads and seasonings. Around 20% of sales already come from emerging markets and another 20% from away-from-home channels, pointing to significant expansion opportunities.
Meanwhile, “North American Grocery Co.” – with approximately US$10.4 billion in 2024 net sales – will house other brands including Oscar Mayer, Kraft Singles and Lunchables.
Executive chair Miguel Patricio said the complexity of the existing structure limited the company’s ability to allocate capital effectively. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value,” he said.
“This move will unleash the power of our brands and unlock the potential of our business,” Kraft Heinz CEO Carlos Abrams-Rivera added.
For brand leaders, the play reflects a broader trend among global FMCG players: simplifying structures so marketing dollars can be deployed with greater agility.
With Heinz, Philadelphia and Kraft Mac & Cheese able to behave like global challengers, and Lunchables and Kraft Singles positioned to double down on staples, the split may create the conditions for faster innovation, more precise consumer targeting and brand storytelling tailored to distinct growth horizons.
The separation is expected to be completed through 2026.
The company, which owns brands such as Heinz ketchup, Oscar Mayer meats and Maxwell House coffee, has been under pressure following weak financial performance. In 2024, sales dropped 3% to US$25.85 billion, while operating profit slumped 63.2% to US$1.7 billion due to US$3.7 billion in impairment charges. Net income fell to US$2.74 billion from US$2.86 billion the year before.
More recently, Kraft Heinz reported a 3.3% decline in organic sales for the first half of fiscal 2025, with volume/mix down 4.2%. In its core North American market, revenues fell 4.8%, dragged by a 5.2 percentage-point slide in volume/mix.
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